The NZD/CAD currency pair broke the sequence of growing lows and highs on the daily chart, as I mentioned in the analysis of 4 January this year. At that time I also paid attention to the breakthrough of support within 0.9066.
The course then headed to the low of 23 November close to 0.8927. As can be seen on the daily chart of NZD/CAD below, it was there that demand reappeared. As a result, the quotations recovered and the week ended with a new resistance test at 0.9066.
The test of this resistance is now important. If the sellers manage to keep it, they will have a chance to return to 0.8920. After overcoming this support, the price may continue to move to a key level of resistance in the vicinity of 0.8670.
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Alternatively, the successful breakout of the area at 0.9066 will open the way to a re-test of the confluence area, where a horizontal zone close to 0.9022 meets a downward trend line stretching from the high of 2016.
